________ Asserts That Because a Forward Contract and a Cash-And-Carry

question 42

Multiple Choice

________ asserts that because a forward contract and a cash-and-carry strategy accomplish the same conversion,they must result in the same exchange rate.

• A)Covered interest parity
• B)Forward premium puzzle
• C)Forward discount puzzle
• D)Put-call parity
• E)Pecking order theory

Understand the influence of environmental factors and reinforcement schedules on behavior and motivation.

Understand the concept and application of negative and positive reinforcement in management.

Recognize the effectiveness of different reinforcement schedules on behavior.

Identify the principles for the effective use of punishment in management settings.

---

Definitions:

Financial Instruments

Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Revaluation Gain

An increase in the value of an asset over its previously recorded book value, recognized after a revaluation process.

Relevant Exchange Rates

The currency rates used to convert transactions involving foreign currencies into the reporting currency for financial reporting purposes.

Fair Value

The price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.